The mood in Sensex and Nifty turned upbeat in the afternoon session with upward momentum witnessed in Banks, Financial Services and Metals indices which led the rally
Ignoring the negative global cues, BSE Sensex and Nifty 50 ended the session with over 2 per cent gains on Thursday. Even after slipping into the red, Sensex finished the session 700 points or 2.09 per cent higher and reclaimed its crucial 34,000-mark. Bajaj Finserv rallied 8.22 per cent and Bajaj Finance jumped 5.48 per cent, helping Nifty 50 to reclaim the psychological level of 10,000 and end with a gain of 210 points or 2.13 per cent at 10,091. The broader market also participated in the rally. The S&P BSE MidCap index gained 1.05 per cent or 132 points to settle at 12,673, while the SmallCap index surged 1.5 per cent or 177 points to close at 12,110. Among top Sensex gainers were Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Power Grid, HDFC Bank and State Bank of India (SBI). While ONGC, Hindustan Unilever (HUL), TCS, Bharti Airtel and Maruti Suzuki were the top Sensex losers. The trend among the sectoral indices was also positive today.
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What led to a rally in Sensex, Nifty during last hour of trade:
FIEO, weekly derivatives expiry: Indian markets opened largely flat today and dipped into red as the session progressed on the back of weak global cues.”The mood in the markets turned upbeat in the afternoon session with upward momentum witnessed in banks, financials and metal indices which led the rally. The sentiment also improved further as comments from Federation of Indian Export Organisations that the ongoing India-China border tensions may not have any immediate impact on the bilateral trade relations. Some strength to the rally was also due to weekly expiry of derivatives contracts which led to shorts also getting covered as indices surpassed key levels of 10,000 in the day,” said Narendra Solanki, Head Fundamental Research, Anand Rathi Shares and Stock Brokers.
Recovery in Dow futures, hopes from FinMin presser: Ahead of the launch of Garib Kalyan Rojgar Abhiyaan, Finance Minister Nirmala Sithraman is holding a press conference today along with Labour Minister Santosh Gangwar and Rural Development Minister Narendra Singh Tomar. “In the second half, a massive short recovery lead market to touch 10106 levels for the day on the back of a recovery in foreign markets, especially Dow Jones futures and expectations from the Finance Ministry, have lead to a recovery in the domestic market. Supreme court deferred hearing on AGR dues to third week July for telecom. There is a Finance Minister conference post-market which may have some positive surprises for the market,” said Vishal Wagh, Head of Research, Bonanza Portfolio Ltd.
Bank stocks, geopolitical situation: Despite weak global markets, Sensex and Nifty 50 settled into the green today. “With the Supreme court AGR ruling providing a respite to the exposed banks, the relief was visible in the banking stocks especially those which had exposure to the telecom companies. The Banking index contributed the most to the positivity and almost all components of the index ended the day positive. The current geopolitical situation and associated comments also gave some support to sectoral movements,” said Vinod Nair, Head of Research, Geojit Financial Services.